U.S. President Donald Trump plans to replace income taxes with tariffs, but what does that mean for the average middle-class American? “Donald Trump announced the External Revenue Service, and his goal is very simple: to abolish the Internal Revenue Service and let all the outsiders pay,

The 16th Amendment to the U.S. Constitution grants Congress the power to levy income taxes. It was ratified by states in 1913. Since then, most states have adopted their own income taxes. However, Trump said that this time there is a "real chance" that reciprocal tariffs could replace income tax.